Pepsi turns over forecast accuracy to AI

This is in tune with the increase in the digital disruption in the FMCG industry

In tune with the increase in the digital disruption in the fast-moving consumer goods (FMCG) industry, PepsiCo India has said that it has stopped conducting forecast accuracy by humans and has assigned the job to machines.

The company has a machine that uses artificial intelligence for all stock keeping units (SKUs) which are two years old for forecast accuracy. Two months ago, the company recognised that the forecast accuracy from sales, unit managers and unit planners was 67 per cent for the top 15 SKUs, while the machine it was predicting 72 per cent.

“For the last two months, we stopped forecast